The GST council meet was held yesterday and some interesting legislation approval were taken in order to give a strong push to government’s efforts for rolling out indirect tax reform from July 1. In the Eleventh session GST Council clears about CGST and IGST law. The last meeting was a constructive one and there are some important decisions which were taken.
- Both CGST and IGST laws got formal approval by GST Council. The laws will now get vetted from legal point of view for minor changes. After that it will get presented for Cabinet approval. Just After getting clearance from cabinet it will move for presentation in parliament in 2nd part of budget session.
- For SGST law will act as a replica law for CGST law
- Legal committee responsible for forming the SGST law finalized SGST law
- After completion circulation made to State Legislatures and Union Territories along with Legislatures ( Pondicherry and Delhi) for taking approval
- For rest union territories with no Legislature for them separate law will be incorporated as UTGST Act. It will be quite similar to SGST law. Parliament need to pass the law.
The good news is that the GST Council on Thursday rolled out the new tax regime from July and cleared all legislations which were needed for a strong reform measure. Approval given for GST (SGST) and GST (UTGST Act). The bills now need to wait for parliament clearance.
So final highlight of the 16th Match meet:
- Approval given by GST council for the remaining 2 of 5 bills related to GST.
- Government will look for cabinet approval for bills in coming week.
- Expectations are there that bills will get the approval in parliament in the ongoing session. State Cabinet will go for examining GST state bill and will forward for passing in assemblies.
- GST will act towards harmonizing 11 states as well as central levis in one and single nationalized sales tax.
- Expectations are there that it will add close to 2 point percentage in GDP, will bring transparency, and will act to reduce the burden of tax resulting in increase of tax revenue.
The new tax regime by GST council:
- Luxury car, racing cars and station wagons : Maximum Cess 15%
- Aerated water/Drinks: Maximum cess 15%
- Pan Masala: Maximum cess: 135%
- Cigarettes and Tobacco: Maximum cess: 290% or Rs.4170/1000 stocks or a combo
- Coal and Lignite: Maximum cess : Rs.400/tonne
- Other supply: Maximum cess: 15%